+------------------------------------------------------------------------------+
STX Trades Record Number of Joint Implementation Carbon Offsets
2010-08-13 15:45:32.396 GMT
By Mathew Carr
Aug. 13 (Bloomberg) -- STX Services BV, an Amsterdam-based
trading company, handled record volume of Emission Reduction
Units created under the Joint Implementation program of the 1997
Kyoto Protocol.
STX traded units for about 900,000 metric tons last month
of carbon dioxide equivalent, up from its previous record of
about 650,000 tons in April, Dzmitry Harokh, who handled the
trades, said today by phone and e-mail.
The Joint Implementation mechanism is the second-biggest
greenhouse-gas offsetting program overseen by the United
Nations. It has about 7 million tons of issued credits, compared
with 428.2 million tons issued under the Clean Development
Mechanism, according to Bloomberg data.
The ERU credits, mainly from East European emission-
reduction projects, are being purchased by industrial companies
that swap them for more valuable European Union carbon dioxide
allowances, Harokh said. Factories, which received most of their
EU carbon permits for free in the five years through 2012, can
profit by swapping them for cheaper Certified Emission Reduction
credits.
"There are some aggressive buyers in the market" who are
willing to pay a discount of as little as 8 euro cents compared
with a CER, he said. Spot CERs traded at 12.36 euros a metric
ton today on the BlueNext exchange in Paris. EU allowances were
at 14.42 euros.
The discount was at about 20 euro cents at the end of July,
Harokh said. There is a discount partly because trading volumes
for ERUs are lower than for EU allowances and CERs, he said.
Trade in December 2010 EU carbon allowances, the benchmark,
was 13.9 million tons yesterday on the European Climate Exchange
in London.
For Related News and Information:
EU emissions-trading stories TNI ENVMARKET EU <GO>
Today's top environment news GREEN <GO>
--Editors: Mike Anderson, Randall Hackley.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
